And we’re back again for the final Heavyweight Loan Showdown! Tonight, the undefeated Credit Card Cash Advance returns for a championship faceoff against predatory Pawn Shop Loans.

Expensive, unfair, and painful, these contenders look evenly matched for the title of Most Dangerous Loan.

Round 1

Credit Card Cash Advances blast out of the corner looking ferocious. This small-dollar, high-interest loan eats borrowers for breakfast and it shows: higher interest than regular credit card purchases, additional ATM fees and finance charges, and no grace period to speak of. This perfect storm of jabs and hooks is almost impossible to defend against.

A credit card cash advance means withdrawing cash through your credit card, and it’s a dangerously simple process. If you have a credit card, you’ll want to check with your provider to find out the terms and conditions. Generally, you’ll withdraw the cash from an ATM or a bank teller. According to a 2015 survey, the average APR for a credit card cash advance is 23.5%[1], which is generally much higher than the borrower’s regular credit card APR (typically 14.99%).

In this round, Credit Card Cash Advances takes early control.

Round 2

There’s the bell and Pawn Shops Loans comes out swinging.

To get a pawn shop loan, you’ll be required to offer the lender a valuable item in exchange for cash. Common items used as collateral include jewelry, electronics, musical instruments, and more. Once the “pawn broker” agrees to accept your item, they’ll give you a cash loan for approximately 25% to 60% of the item’s value. Because you’re not getting the full value, the average loan is a small-dollar deal, generally only $75-$100.[2] Borrowers are then given a short amount of time to repay the loan and reclaim their property. If they aren’t able to repay the loan, the pawn shop will sell their item. This devastating combo forces Credit Card Cash Advances against the ropes.

In addition to the low loan amounts, and the short repayment period, pawn shop loans will likely also include high interest rates and fees. On average, you’ll be charged about 10% per month to borrow, which comes out to 120% APR. The rate you get will depend on the laws in the state where you live. You may see rates from 12% to 240%.[2]—a stiff uppercut to the jaw of Credit Card Cash Advances!

Round 3

But Credit Card Cash Advances answers back with another pounding series of blows to the gut. Credit Card Cash Advances digs deep and fires their strongest attack yet: building a habit of bad spending behavior.

Credit card cash advances are really only good for worst-case-scenario emergencies. Borrowing against money you don’t have is like swiping your credit card at a slot machine (which can happen now!). Most credit card holders don’t use cash advances (only about 3% do[1]) and for good reason. But if you start using them with any kind of regularity, you can quickly find your debt growing and your financial control slipping away. That’s the knockout punch.

The Most Dangerous Loan

And it’s over! Credit Card Cash Advances takes the tournament!

When it comes to “Dangerous Loans” there’s no shortage of contenders: Credit Card Cash Advances, Pawn Shop Loans, Employee Salary Advances, Title Loans and more. The world of lending can be a scary arena filled with brutal opponents trying to out-muscle the borrowers every way they can.

If you’re in financial need, avoid the pain of these dangerous loan types and choose a safe, proven, reliable option with OppLoans. Our personal loans are transparent, lower cost, and delivered with caring service. Click below to get started today. Don’t let predatory loans leave you down for the count!

CA residents: Opportunity Financial, LLC is licensed by the Commissioner of Business Oversight (California Financing Law License No. 603 K647).

DE residents: Opportunity Financial, LLC is licensed by the Delaware State Bank Commissioner, License No. 013016, expiring December 31, 2019.

NM Residents: This lender is licensed and regulated by the New Mexico Regulation and Licensing Department, Financial Institutions Division, P.O. Box 25101, 2550 Cerrillos Road, Santa Fe, New Mexico 87504. To report any unresolved problems or complaints, contact the division by telephone at (505) 476-4885 or visit the website http://www.rld.state.nm.us/financialinstitutions/.

NV Residents: The use of high-interest loans services should be used for short-term financial needs only and not as a long-term financial solution. Customers with credit difficulties should seek credit counseling before entering into any loan transaction.

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